Student loan offers will likely be sent to you before you even finish high school. Sometimes it will seem like a good thing to get so much help towards the goals you’re trying to meet. But, you should think over a few things before you get into this kind of a debt.
Always know the pertinent details of your loans. Stay on top of what your balance is and know which lender you borrowed from, plus what your repayment status is. These details will significantly influence the repayment options available to you, as well as the loan forgiveness terms you will face. Budget wisely with all this data.
Don’t fret when extenuating circumstances prevent you from making a payment. Many times a lender will allow the payments to be pushed back if you make them aware of the issue in your life. However, this may negatively affect your interest rate.
Private financing is always an option. Student loans through the government are available, but there is a lot of competition. Private loans – especially small ones – do not have as much competition, and this means that there is funding available that most other people don’t even know about. Ask around your city or town and see what you can find.
If you want to pay down student loans faster than scheduled, start with the highest interest rate loans first. You may think to focus on the largest one but, the accruing interest will add up to more over time.
How long is your grace period between graduation and having to start paying back your loan? Stafford loans have a grace period of six months. If you have Perkins loans, you will have 9 months. Other loan types are going to be varied. Make sure that you are positive about when you will need to start paying and be on time.
Squeeze in as many possible credit hours as you can to maximize your student loans. Sure a full time status might mean 12 credits, but if you can take 15 or 18 you’ll graduate all the quicker. This will keep your loans to a minimum.
In order to have your student loan paperwork go through as quickly as possible, make sure that you fill out your application accurately. Any information that is incorrect or incomplete can delay it being processed, potentially causing you to miss important deadlines and putting you behind in school.
If your credit is sub-par, you might need a co-signer for private student loans. You have to make every single payment. If you fail to do so, the co-signer will be responsible for the payments.
Parents and graduate students can make use of PLUS loans. The interest rate is no greater than 8.5%. This costs more than Perkins or Stafford loans, but it will be a better rate than a private loan. These loans are much better suited to an older student that is at graduate school or is close to graduating.
Some schools get a kickback on certain student loans. For example, there are schools that allow the use of their name by select private lenders. This is frequently not the best deal. Sometimes a school will have worked out a financial deal with a lender if you choose to use them. Make sure you know all the details of any loan before signing on the dotted line.
Going into default on your loans is not a wise idea. The government has several collection tools at its disposal. For instance, it may garnish part of your annual tax return. They can also take money out of your paycheck. You will probably be worse off than before in some cases.
Be leery of applying for private loans. The terms of such loans can be difficult to ascertain. Many times, you will not know until you’ve already signed for them. Once that happens, you may find it difficult to get out of the agreement. Learn about each loan first. If you get an offer that’s good, speak with other lenders so you can see if they can offer the same or beat that offer.
To be sure that you’re able to spend your student loan money right, get your meal plan that pays by meals and not dollar amounts. This means you’re not going to have to pay a lot for the food you eat if you’re not able to get food that day from the school.
Stay connected to lenders or people that supply you money. This is key because you need to have all the particulars with regard to the loan and the terms regarding its repayment. He or she may have useful information for you.
Know what the options for repayment are. Check out graduated payments as one option. This makes your first payments smaller and they get bigger gradually over time, when you are hopefully making more money.
To make sure you get financially stable when it comes to student loans, try to get a job while you’re on campus. You may be able to pay for some things yourself, and you will have a little extra money to hang out with friends.
Stay in touch with all lenders after you finish school. Make sure they are updated in regard to your contact info. In this way, you will know if there are changes in your lender information or the terms of your loan. You must also notify them if you graduate, transfer, or withdraw from college.
Maximize the number of AP credits you accrue in high school to cut down on your college borrowing needs. The AP classes give you a college level competency exam at the end. A high score means you are given college credit for the class.
College can give you a lot of debt over the four years you are there. Make sure not to take too much money with high interest rates. Keep in mind all that you read here as you prepare for both college and the future.